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Red Ocean Essay

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LEONEE A. VILUAN BSMA - 4 RED OCEAN STRATEGY The red ocean represents the existing market space. Companies in red oceans most often pursuecompetitive-based strategies, aiming to get a bigger share of the market from their competitors - thus the bloody competition - red ocean metaphor. This approach is called the structuralist view of strategy, meaning that companies adapt their behavior (strategy) to the existing industry 's conditions. However, this approach is limited. Due to globalization, lowering cost of production and availability of information, the competition is more fierce some than ever in most industries, putting more pressure on companies and shrinking their profit margins. In this competition race, products and services …show more content…

* Quality issues when gauges are not calibrated on time because too many are held. * Safety issues when people fall over things. * Lockers and racking cluttering the workplace making it hard to move around or to see each other and communicate. Some of the standard texts also talk about the elimination of excess materials and WIP. This is a complete restatement of all the JIT goals of releasing capital, reduced movement, shorter cycle times and so on. The question may be asked: should we then see inventory and WIP reduction as part of the implementation of the lean approach or as an element of 5S? The answer, as ever, is that keeping inventory and WIP to a minimum is simple good practice. Whether we view it as JIT, or lean, or 5S or assign any other term is quite frankly irrelevant. The major element of Seiri is simply a critical look at the area. Involving cross-functional teams, or looking at each other 's areas, is an obvious first step. People tend to be blind to failings in their own work place and a fresh pair of eyes can be useful. Another element of the standard approach is 'red tagging ' where items are given a tag which says what the item is, which location it is in and when it was identified in this location. We then leave the area for a while and anybody using the item notes this. We go back some time later and can readily identify things

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